PDC had already issued Sadeghi and his companies, Project SEED LLC and LAB Holding, more than $480,000 in loans and grants for the project. The agency had all but conceded that money -- telling Sadeghi he wouldn't have to pay back "the benefit of nearly half a million dollars in public funding" -- but the settlement formalized that agreement.

Additionally, the PDC formalized its $200,000 settlement payment to Sadeghi, which the agency authorized in December. The agreement required Sadeghi to turn over most of the work tied to Centennial Mills.

The case was dismissed from Multnomah County Circuit Court on April 11.

The PDC has now turned to the Schnitzer family's Harsch Investment Properties to study redevelopment options for Centennial Mills.